12 Jul 2026

Non-Saudi Real Estate Ownership: Your Comprehensive Guide to the Implementing Regulations and Geographical Zones (2026)

The Kingdom has permitted non-Saudis to own real estate within designated geographical zones, following the Council of Ministers’ approval of the Implementing Regulations of the Law of Non-Saudi Real Estate Ownership and the adoption of the Geographical Zones Document during its session held on Tuesday, June 23, 2026, in Jeddah. This update expands the buyer base for Saudi developers, while introducing statutory considerations regarding the buyer’s category, property location, and the type of right in rem.

In this article, we at Al-Salama Law Firm & Legal Consultations outline the categories of beneficiaries, geographical zones, fees, requirements, electronic ownership steps, penalties, and the practical implications for those developing, investing in, or selling real estate.

Table Of Content

1. The Statutory Framework: Updated Law, Regulations, and Zones

The updated Law of Non-Saudi Real Estate Ownership was enacted by Royal Decree No. (M/14) dated 19 Muharram 1447 AH (corresponding to July 14, 2025 AD), becoming the effective and approved statutory framework in this regard. The Law consists of 15 articles regulating ownership cases, followed by an Implementing Regulation of 14 articles detailing the provisions and procedures, in addition to the Geographical Zones Document which delineates the permitted locations for ownership. Subsequently, the Council of Ministers’ approval on June 23, 2026, ratified the Regulations and Zones, bringing the framework into actual enforcement.

The Real Estate General Authority (REGA) drafted this law through a methodology that encompassed reviewing real estate regulations and conducting bench-marking studies with G20 countries and nations with advanced regulatory infrastructures, thereby enhancing investment attractiveness and market efficiency in alignment with the objectives of Saudi Vision 2030.

2. Who is Eligible to Own? Categories of Beneficiaries

REGA classified beneficiaries into six distinct categories, each initiating from its designated statutory track:

Resident individuals within the Kingdom (possessing a valid Resident Identity – Muqeem IQAMA).
Premium Residency holders.
Individuals outside the Kingdom (non-residents).
Citizens of the Gulf Cooperation Council (GCC) countries.
Non-Saudi corporations and non-profit entities.
Legal persons (الأشخاص ذوو الصفة الاعتبارية) designated by the regulating provisions.

Resident individuals, Premium Residency holders, and GCC citizens are permitted to own real estate within the designated geographical zones across all cities in the Kingdom. Non-resident individuals must apply for a digital identity through one of the Kingdom’s foreign missions prior to acquiring property within the geographical zones. Non-Saudi corporations and non-profit entities may own real estate within the geographical zones across all cities, with the absolute exclusion of the holy cities of Makkah and Madinah.

3. Where is Ownership Permitted? Geographical Zones

Geographical zones represent the cornerstone of the property ownership journey, as they define the permissible locations for ownership, the type of available rights, and the requirements associated with each zone. The Geographical Zones Document provides maps of designated locations, outlining the permitted ownership percentages, types of acquired rights, durations, and controls. Beneficiaries can inspect the zones map and real estate opportunities via the “Saudi Properties” platform at: saudiproperties.rega.gov.sa.

Riyadh’s designated zones include: Qiddiya, New Murabba, the Sports Boulevard and Arts District, Diriyah Gate, King Salman Park, Sedra, King Abdullah Financial District (KAFD), King Salman International Airport, and Transit-Oriented Development (TOD) sites. The document similarly encompasses designated zones in Jeddah and other cities and governorates across the Kingdom as specified in the official maps.

4. The Special Status of Makkah and Madinah

Makkah and Madinah hold a sacred religious and historical status; hence, their ownership provisions fall under a special framework that safeguards the sanctity of these locations. Real estate ownership in the two Holy Cities is strictly restricted to Muslims within limited zones, subject to the approved statutory tracks.

The requirement of being a Muslim strictly applies to resident individuals, Premium Residency holders, non-resident individuals, and GCC citizens wishing to own real estate within the geographical zones of the two Holy Cities. The regulations governing Makkah and Madinah remain highly specific, varying according to the status of the owner, type of entity, and geographical zone, which necessitates rigorous verification prior to structuring or marketing any transaction.

5. Ownership Requirements and Entity Registration

The Law mandates the following requirements for a valid ownership transaction:

Possession of a valid identity issued pursuant to the Kingdom’s regulations (Resident Identity/IQAMA, Premium Residency, or a Digital Identity for non-residents).
Inscribing the subject real estate in the Real Estate Registry (السجل العقاري) via In-Kind Registration (التسجيل العيني).
Disclosing all data and information pertaining to the ownership transaction.
Executing all financial transactions through electronic payment methods approved by the Saudi Central Bank (SAMA).

Furthermore, non-Saudi entities must comply with additional pre-ownership procedures. Foreign corporations must register with the Ministry of Investment (MISA) and disclose their direct and indirect owners and ultimate controllers (Ultimate Beneficial Owners – UBOs). Non-profit entities must register with the National Center for Non-Profit Sector Development under the same disclosure mandates.

The entity must appoint a statutory representative possessing a Saudi national identity, open a local bank account within the Kingdom under its name, and obtain a registration number from the competent authority. The entity is legally obligated to notify the competent authority of any material change in ownership or control within fifteen (15) days of its occurrence, including the transfer of 5% or more of the corporate shares.

6. The Electronic Real Estate Ownership Journey Steps

The property ownership journey is executed entirely via the “Saudi Properties” portal linked to the Real Estate Registry, accessed via the National Unified Access (Nafadh) platform, through five steps:

Preparing Core Requirements: Valid ID or residency for residents, or issuing a digital identity for non-residents, opening a bank account, and providing a registered contact number.
Selecting the Property: Via the Saudi Properties platform or other sources, ensuring it is situated within the approved geographical zones.
Logging into the Platform: To access services associated with the ownership journey.
Verifying Ownership Requirements: Completing the service and issuing the Eligibility Certificate.
Completing the Purchase and Title Transfer: Finalizing procedures, settling due fees and taxes, and executing the electronic conveyance (الإفراغ إلكترونياً). Upon completion, the real estate right is registered in the Real Estate Registry, and the title deeds (الصكوك) are issued.

7. Fees Levied on Non-Saudi Transactions

REGA levies a transaction fee on the value of non-Saudi transactions concerning rights in rem (الحقوق العينية) over real estate, capped at a maximum of 5% of the transaction value. The exact amount is determined based on the type of right in rem, its purpose, and the geographical zone.

This fee is levied in addition to other statutorily prescribed taxes and fees, such as the Real Estate Transaction Tax (RETT). Buyers and developers must factor this fee into the total transaction cost calculation from the negotiation phase, given its variance based on location and the nature of the right.

8. Supervision, Violations, and Penalties

REGA is exclusively competent to monitor and record violations. A specialized committee reviews the violations and assesses penalties based on their nature and resulting impact, stipulating a remediation period in its decision ranging between 10 and 180 days. Official notifications take statutory effect upon being dispatched via the communication methods registered on the Saudi Properties portal or via text messages linked to verified government platforms.

The progressive penal system initiates with a warning, followed by a monetary fine, and escalates in severe cases to compelling the violator to sell the property via public auction. The violator reserves the right to appeal the committee’s decisions before the Administrative Court (Grievaunces Diwan) within sixty (60) days from the notification date.

9. What Does This Mean for Developers, Investors, and Sellers?

This regulatory update opens a broader buyer base, yet demands absolute statutory precision in every transaction:

The Saudi Developer: Must verify that the real estate is situated within the permitted geographical zone, ascertain the type of right in rem permitted for transfer, and ensure that ownership controls apply to the targeted buyer category before constructing marketing campaigns directed at foreign investors.
The Non-Saudi Investor: Must thoroughly analyze their statutory positioning and beneficiary category, fulfill identity, registration, and disclosure requirements, and calculate the corresponding fees prior to determining the transaction value.
The Seller and Project Owner: Must verify the buyer’s eligibility, the zone, and the type of right subject to the transaction, documenting these aspects clearly in the contract to guarantee the validity and stability of the conveyance.

Conclusion

The ratification of the Implementing Regulations and Geographical Zones represents a paradigm shift in the Saudi real estate market. It is accompanied by a stringent statutory track that begins with identifying the beneficiary category, proceeds through verifying the zone and type of right, and concludes with registering the title in the Real Estate Registry.

At Al-Salama Law Firm & Legal Consultations, we provide specialized legal advisory services concerning non-Saudi real estate ownership, verification of zones, beneficiary categories, rights in rem, entity registration, disclosures, contract drafting and review, and representation before the Real Estate General Authority (REGA).

Contact us today to review your project or transaction in light of the new provisions.